Why Net Promoter Score?

customerreviewpeopleToday large number of companies all over the world use the NPS index (Net Promoter Score) to measure customer satisfaction and get quick hints for development. This is despite of fact that the method of this metric is only about ten years old. NPS main principle is trivial and linear – client recommends only those brands or companies whose goodness he is sure of.

Opponents argue that the measure does not give the full picture, and often requires interpretation. Having experienced variety of different in-depth researches, I would argue that NPS one of the most effective support engine for customer focused rapid changes for an enterprise.

One of the most significant NPS secrets to success lies in the simplicity and speed for both – the company and the customer.

Companies often experience a difference in evaluation given to the company and the service staff. Why? And what to for improvement the evaluation ?

Assessments given to the company and to the employee are almost always different and in favor to the last. The better the rating for the company and the lesser the difference with the employee’s grade, the stronger is the company’s position in the market.

The most important factor on business assessment is of course the quality of specific service situation. If this is weak, it usually always has negative effect to the company results.

Another significant factor, in order to improve the company evaluations is the brand – if its content is understandable and is positively visible. In other words it’s communication presence in media, social media, personalized communications efficiency (e-commerce helps a lot in here) and public visual identity.

Recommendations:

1. increase your footprint in social media

2. enhance bilateral regular communication in e-sales and e-service channels, which has great potential to support business communication capabilities

3. pay attention whether the company’s external brand identity coincides with the displayed messages and is not confusing.

Compliance with recommendations above has a positive impact to the NPS / customer loyalty and hence the company’s financial results!

 

Teenusedisain toetab kliendi elukorraldust läbi teenuste sujuva kasutuse

Service design

Teenindusolukorrad on alati pakitud erinevate protsesside, inimeste ja emotsioonidega. Teenusedisaini ülesandeks on panna kõik need komponendid võrdsetes osades ja sobivalt kokku.

Tihti küsivad ettevõtted – kuidas kaasata inimesi protsessidesse, mis on üldiselt külmad ja pigem soovimatud ning kuhu on negatiivsus sageli nii kliendi kui teenindaja poolt sisse kirjutatud. Olukorda saab muuta meeldivaks, käsitledes kõiki 3 olulist teenuseaspekti: inimesi, kohti ja protsesse ühe tervikuna ja üksteisest sõltuvana.

Teenuse kujundamisel tuleb arvestada ajakuluga: on tavapärane, et tuleb proovida ja teha vigu, tuleb uuesti proovida ja jälle teha vigu ning uuesti proovida.

Anna kliendile kontrollivõimalus – selgita alati võimalikult täpselt teenusprotsessis toimuvat. Ning anna kliendile võimalus aidata – et muuta teenust täiuslikumaks. Vajalik on pakkuda kliendile teenusest võimalikult palju ning arusaadavat teavet. Sõnavara, mida me kasutame kliendiga rääkides peab olema kergesti mõistetav ka “väljaspoolt tulijale”.

Tähtis on, et kõik protsessis osalejad – kliendid ja klienditeeninduse inimesed teavad, mis on nende tegevuste tegelik ja laiem eesmärk ja milline on parim viis selle saavutamiseks.

Parimaid tulemusi aitab teeninduses saavutada positiivsus! Teenuse pakkumise kohad, mida klient näeb on vaid jäämäe tipp. Allpool veepiiri on hulk protsesse ja inimesi, kes töötavad selle nimel, et teenus toimiks hästi, oleks sujuv ja looks positiivset emotsiooni. Teenuste juhid, kes kutsuvad teenust ellu, peavad alati esile tooma positiivseid arenguid.

Kliendi arusaam ja teadlikkus teenusest parandab tajutavalt tema hinnangut teenuse kvaliteedile. Hea, kui saame anda kliendile võimaluse kirjeldada, mida ta teenust kogedes tunneb. Ja kuulame kliendi antud nõuandeid.

Service design aims smooth use of services – smooth living mode

Service design

Most of service situations are packed with functions, people, emotions. Service design puts all these 3 together as equal parts. And this is substantial.

This is often asked – how to involve people in a process that is generally felt cold and unwanted. It can be made happen by addressing all sectors of service: people, places and processes.

Remember – when designing services you have to try and make an error, you have to try again, make an error and try again …

Give customer control – tell in service process what’s gonna happen and how customer could help to make the entire service process smooth and perfect.

You have to make sure that everyone in service process – the client and the customer service people, know what is the real aim of their activities. And what is the best way to achieve this.

The service places are like the tip of an iceberg – the only thing customer could see. Behind that, under the waterline there are the processes and people who are making it solid, smooth and pleasant.  Service coaches who work inside the whole system should develop the process by highlighting the good. The best results in service could be achieved only in positive atmosphere.

Ask people to describe how they feel when they experience your service. Provide as much as possible information about the service to your customer. Take care that the terminology used, when talking to a customer, is easy to understand.

Better awareness improves the perceived service quality – always!

The most important is competence … and then speed

Speed

Customers say today that the most expected from businesses is competence. And then the speed.

Considerably fewer count the price in decision making. Price becomes important when there is lack of competence and speed. The price war is for the company in most cases the downward path in spiral.

Consequently, all starts from competence?

What is competence?  This is knowledge + skill to pass this to the customer. Competent employees are also fast. But … acquiring knowledge takes time in most cases. Consequently, the smaller the service staff turnover, the greater the expertise. And you need to cut down your price less for competition.

Thus everthing begins for the company by great staff retention – fair fee, involvement, listening, development and great ambience composition.

So, a successful company can keep its good service employees … and is able to move up along the success-spiral. It’s as simple as such.

Oh, yes – good leaders are also needed. Those who are quick, dare to trust, change get everybody involved and are able to respect.

Kõige olulisem on kompetents … ja siis kiirus

kiiirus

Kliendid ütlevad täna, et ootavad ettevõttelt kõige enam kompetentsi. Ja siis kiirust. Ning tunduvalt vähem loeb otsustamisel hind. Hind on muutub oluliseks siis, kui kompetentsi ja kiirust ei ole. Hinnasõda on ettevõtte jaoks ilmselt allakäigutee.

Järelikult algab kõik kompetentsist?

Kuid mis on kompetents? See on teadmised + oskus ja huvi teadmist kliendile väljendada. Kompetentne töötaja on kiire. Teadmiste omandamiseks kulub aeg.

Järelikult mida väiksem on teenindustöötajate voolavus, seda suurem on kompetents. Seda vähem peab hinda konkurentsis püsimiseks hinda kärpima ning tekib enam võimalusi investeerimiseks, et luua uusi tooteid … 

Seega algab ettevõtte jaoks kõik heade töötajate hoidmisest – õiglasest tasust, kaasamisest, kuulamisest, arendamisest ja meeleolu loomisest. Nii oskab hea ettevõte oma töötajaid, kes kliendiga kohtuvad, hoida … ja suudab liikuda edukuse spiraali mööda üles.

Nii lihtne see ongi.

Ah jaa – häid juhte on ka vaja. Neid, kes on kiired, julgevad usaldada, muutuda, kaasata ning oskavad austada.

e-teenindus kui ettevõtte konkurentsieelis

Miks on e-teenindust vaja kliendile?

Täna on e-müügi ja –teeninduskanalid kujunenud oluliseks suhtlus- ja tarbimisväljundiks. Erinevates kliendiuuringutes peavad e-teenindust äärmiselt oluliseks juba üle poolte Eesti äri- ja eraklientidest.

32% Euroopa, 39% Kagu-Aasia ja 23% Ameerika kindlustusturu klientidest kasutavad täna teenuse saamiseks erinevaid online-kanaleid. Isiklik teeninduskontakt jääb endiselt oluliseks, eriti kui tegemist on keerumisema nõude või kaebusega. 50% Ameerika klientidest eelistas nõude lahendamisel isiklikku kontakti.[1]

Viimaste aastate majanduslangus on oluliselt mõjutanud tarbija käitumist ja eelistusi. Hinnatakse enam isiklikku aega ning järjest enam eelistatakse teha tehinguid ja ostuotsuseid kodust lahkumata. Otsuse tegemisel tugineb klient põhjalikule internetist kättesaadavale infole – e-kanalite usaldusväärsust mõjutab lisaks turvalisusele kiire informatsiooni kättesaadavus ja mugavus.

Uued võimalused on muutnud oluliselt tarbija hinnanguid ja ootusi: ettevõttelt oodatakse enam läbipaistvust, soovides aru saada, millele ta raha kulutab ja miks. Ta ootab nutikamaid ja keerukamaid teenuseid ning samas lihtsust ja kiirust teenuse seadistamisel. Klient on kannatamatu ebakompetentsuse suhtes, kuid on kvaliteedi eest nõus maksma enam.

Klient:

      1. soovib enam informatsiooni ostuotsuste tegemisel ning soovib asjadest lihtsalt ja kiiresti aru saada
      2. tahab omada head ülevaadet tarbitud teenustest – sellest mitte aru saades valib odavama hinna
      3. väärtustab kiirust, mugavust ja kompetentset infot enam, kui hinda
      4. eelistab paindlikkust, mugavust ise teenuse tarbimise ja muutmise osas reegleid seada just talle vajalikul viisil ja määral.

Taolist tehnilist võimekust pakub ettevõttele e-teeninduskanal.

E-keskkonna üks võtmeid on kommunikatiivsus – klient saab oma küsimusele kiirelt vastuse ning veel parem, kui diskussiooni saab kaasata ka teisi kliente. Arvamused on avatud kõigile ja ettevõte suudab küsimustele kiiresti ja avatult reageerida. Suhtluse avatust mõjutab hästi kombinatsioon sotsiaalmeediaga.

E-teeninduse üks väärtusi on võidetud klientide usaldus:  “tänu e-teeninduskanalile on asjad minu kontrolli all, ettevõte on tänu tekkinud läbipaistvusele minu jaoks usaldusväärsem, kompetentsem ja lähedal”.

Miks on e-teenindust vaja ettevõttele?

E-kanal ei ole ettevõttele enam pelgalt “nice to have” võimalus, vaid on kujunenud “need to have” põhiväärtuseks.

Internet, pakkudes peaaegu piiramatut valikuvõimalust on nihutamas võimu ettevõttelt tarbijale. Ettevõttel on üha  raskem eristuda hinna või tootega, kuid alles jääb võimalus eristuda kliendi kogemuses. Seda näiteks läbi kvaliteetse e-teeninduse, mis on mugavam kliendile ja kindlasti tõhusam ettevõttele.

Ettevõtted sisenevad uute teenustega kiiresti infotehnoloogia valdkonda. Teenuste arenguga kaasnev teabe keerukus ning andmemaht muudab käsitööna teostatava klienditoe / nõustamise liigselt aega- ja kompetentsi nõudvaks. Lahenduseks on hästitoimiv e-teeninduskeskkond võimaldades kliendile head ülevaadet ning väärtuslikumaid teenuseid.

E-teenindus:

– laiendab võimalust olla operatiivne ja kättesaadav tipptunnil

– võimaldab põhjalikumalt ja selgemalt otse-suhelda suurema arvu klientidega

– annab võimekuse olla kiire, tähelepanelik ja nähtav, valmis klienti kuulama, kuulma ja vajadusel abistama.

e-service as competitive advantage

Are e-services expected by customers?

E-commerce is evolving today into essential communication and consumption medium for consumers.

23% of American insurance customers are currently using a range of different online channels, including providers’ own websites and blogs, to research purchases. However, compared to other areas, the use of online channels is relatively low across the region. In Europe, 32 percent of consumers are already using online sources for research, and in Asia-Pacific, the mark stands at 39 percent.

However, the personal contact is still essential—especially when it comes to claims, as 50 percent in the Americas want personal contact throughout the claims process.[1]

Different recent studies in Estonia have exposed that e-services are considered vital by over half of the business and private customers. e-sales and -service channels have become for us important communication and comsumption output.

Recent economic downturn have had a significant impact on consumer behavior and preferences. Customer evaluates today more personal time and is therefore more willing to do purchase decisions without leaving home. But his decisions are made on the basis of in-depth information available on the Internet. Besides security are e-channels more trusted for quick access to wide information and convenience.

New opportunities have altered significantly expectations: consumer ecpects more transparency from the service providers, desiring to understand, for what he spends the money and why. He looks for smart and sophisticated services, but at the same time the ease and speed of the service setting. He is impatient towards incompetence and on other hand is ready to pay more for quality.

Client desires flexibility, convenience in service consumption and alteration of the rules just in an appropriate manner and degree. Such technical capabilities are provided by e-channels, where he is ensured the easy access to information, assistance, and he is given the opportunity to make his own changes to services.

One of the keys of e-environment is the ability and skill to communicate. The customer must get answers quickly, and even better, when other customers are included to the discussion. Comments are open to everyone, and the company is able to respond quickly and openly. Communication openness is positively affected by the combination with social media.

One of the e-channel basic goals is to win customer confidence, “thanks to the e-service channel, things are under my control, the company has gained the trustworthyness due to being transparent for me”

Why does the enterprise need an e-commerce channel?

E-channel is no longer just an nice-to-have alternative, but is becoming today the need-to-have core value. Internet offering almost unlimited alternative choices is supporting to lift the power from a  company to the consumer.

Increasingly difficult is today to differentiate by product or price. Still there is option to differentiate by  customer experience. For example standing out by the e-service quality, which is more convenient for the customer and eventually also more efficient for business.

Many of the conventionl services, or companies are entering with their services to IT sphere. Associated with the information development, complexity and amount of data makes manual customer support excessively time- and competence consuming. The solution is a high quality e-service environment that enables new, more valuable customer services and more sales.

E-services give the company opportunity to be operational and accessible during rush hours, and allows for a more clear direct interactions with a larger number of customers. e-channel gives the capability to be prompt, attentive and visible – willing to listen, hear and assist customer whenever necessary.

Äri ümberkujunemise mõjurid

IBM tegevjuhi hinnang, kuidas tehnoloogia areng mõjutab äri lähitulevikus

Infotehnoloogia ja sotsiaalse meedia väga kiire areng mõjutab oluliselt ettevõtete juhtimispõhimõtteid.

Individuaalne lähenemine – üha enam on võimalusi hinnata iga töötaja tööpanust arvestades tema juhi, kolleegide ja klientide erinevaid hinnanguid, mis annab võimaluse luua erinevaid ja tänasest objektiivsemaid palgamudeleid.

Klendisuhte segmendipõhine juhtimine taandub individuaalse kliendisuhte juhtimise eesSelle asemel et täita segmendipõhiseid (näiteks geograafiline, vanus, sissetulek) nõudeid, saavad ettevõtted tänu infotehnoloogilistele arengutele kohanduda konkreetsetele kliendi isikupõhistele vajadustele ja soovidele.

“Mida võib näha tänu üha kiiremale andmetöötlusele ja sotsiaalmeediale ,on keskmise tarbija ajastu lõpp ja individuaalse ajastu algus,” “See muutus tähtsustab dialoogi”  – võimekust mõista iga üksikut indiviidi. Edu ei tulene enam vaid ettekirjutatud skripti käsitlemisoskusest.

“Lõppude lõpuks, tähendab see ettevõtte mõtteviisi ja kultuuri muutust”.  Kuna tehnoloogia on arenemas järjest täpsemaks, tingib see mõtteviisi muutuse ärijuhtimises.

Sotsiaalne võrgustik mõjutab pakutava väärtust – “oluline ei ole mitte see, mida sa tead, vaid teadmine mida sa jagad”.

Andmeanalüütika mõjutab otsustamist järjest olulisemalt – andmed on konkurentsieelise aluseks –  “järgmiseks loodusvaraks”. Otsused tuginevad üha enam analüütilisele ennustusele, võrreldes seni domineerinud sisetunde instinktiga, kus liidrid ja juhid tõlgendavad infot ja teevad otsuseid läbi subjektiivse kogemuse.

 

 

Business Transformation in Near Future

IBM CEO Predicts The Future Of Business

Rapid shifts in technology, outburst of social media will impact substantially the way businesses are run tomorrow.

Individual  approach – More and varied input of managers, colleagues and customers on each employee’s performance may create more objective pay models.

Consumer Segments Will Cede To The Individual – Rather than meeting the needs of different consumer segments (e.g. geographic, age, income) businesses will be able to truly serve the individual based on specific needs and desires. “What you will see with rapid data and social sharing is the death of the average and the era of you,” “It’s about a dialogue” with each individual understanding her/him, not about just handling the script any longer.

“At the end of the day, it’s about mindset and culture” – Just because the technology exists and will become increasingly accurate, the shift will require new ways of thinking in business management.

The Social Network Will Drive Value –  In the near future “your value will not be what you know, but what you share.”

Data Analytics Will Revolutionize Decision-Making – Data will be the basis of competitive advantage going forward, calling it the “the next natural resource.” Decisions will be based on predictive elements versus gut instincts compared today when judgments are still based on anchoring biases – leaders and managers interpret information through the lens of their subjective perspective and set of experiences.

 

Strategic Management of Customer Relations

Stories by Leaders

are a series of experience exchange of Pärnu Konverentsid, where Estonian top executives will talk for 3 hours with other leaders, share their story in the open discussion with participants.

ER

In modern world customer-centered approach leads to success. “Strategic Management of Customer Relations” was the first of the leader stories in this spring’s conference theme. Ene Raja talked about her experiences.

In businesses where large number of customers do not have regular direct customer service experience the  service is perceived by the customer as an abstract of the fee to be paid.

In this case for an enterprise it is challenging to manage customer communication /loyalty and customer decision can be easily influenced by competition.

Command over customer experience becomes therefore highly important and should now be taken to the enterprise management level.

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The customer stays with the company, which provides to him good experience. Good experience management skills are for a service company the key for advantage today. Experience Management should not be random, it should be planned and managed carefully. Offer to your customer additional value, which is unexpected and would create a “wow-effect”!

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Do not expose the ignorance to your customer. TIP: customer is more satisfied with immediate response “we solve your problem in five days”, compared when the immediate response delayed and client receives your response and solution in three days. The customer wants to have control over the situation  – to know what and when are things happening with him/his question and when his problem is solved! This is often more important than quick (but not as quick as customer expects!) solution.

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Customer shares the positive experience, and even more, he shares the negative. Sharing the experience in social media has given the customer a significant position advantage. Compensate for the negative customer experience – it is cheaper and easier to have the situation resolved in favor of the client, rather than debate over the issue and degrade yourself publicly.

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Consumer expects kindness and friendliness, but he/she looks even more customer service expertise and competence to find the best solution and find it quickly. Trust service personnel and provide sufficiently broad mandate for decision-making – the limits within which employees can decide for themselves. Customers love today speed in decisions. This improves customer satisfaction, employee motivation, and company’s financial results.

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Distinction of the best pays off. Employees are different – recognize the best by prestigious remuneration. Evaluation principles should be clear and simple. Also, customers are different – sometimes it makes sense to abandon unprofitable customers to contribute more for the good. Create different service model for different customer segments!

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Communication with customers is mutual and two-sided – in addition to your telling, the client must be given word and you must hear it and RESPOND!

Customer communication in different media must always follow the basic direct communication rules: say hello, talk in direct speech, always respond to questions and say good-bye. As simple as such!

Ask for customer recommendations and link this result to your managers’ performance fee. This is the quickest way to teach your organization to listen your customers.

When asking customer recommendation (Net Promoter Score), it is really important (and smart) to provide feedback to the client, how your company uses the given recommendation and you get loyal customers without loyalty program! But when our loyal customer still leaves – then your price must be very wrong.

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Keep cost under control by smart development of e-solutions. Besides lower cost, e-channel provides in addition consistent service quality and good opportunities for additional sales.

The key for e-service is simplicity – customer expects easy and fast service. But … building a simple e-business solution is difficult task for a service provider.

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To each his own. Service design requires a different strategy for different national/ cultural environments. E.g. in Nordics customers can be on hold (queues) for a longer time period, in Baltics waiting in line more than half a minute would raise frustration; in South-Europeans prefer direct communication over e-channels, in Russia customers are satisfied receiving the necessary information from the telephone answering machine.

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